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Reply to "Taking out earnings from investments? "
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[quote=Anonymous][quote=Anonymous]I don't understand why you would do this unless you had an emergency and absolutely needed the cash. For low expense ratio mutual funds/index funds, you tend to make the most if you hold onto it for multiple years (you've made $600 now--what about in 5-10 years?), and, as PP mentioned, [b]you pay taxes on long-term capital gains rather than short term capital gains. [/b] I have a small stock portfolio that is made up of largely index funds and ETFs which has been slowly growing over the years, and I only intend to sell stock for a major expense like a downpayment for a house or some sort of catastrophic medical emergency.[/quote] You pay more tax on ST cap gains.[/quote]
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